China local government financing vehicles in focus

Standard & Poor's believes Chinese banks will continue to back the financing vehicles due to their economic and policy role.

Why are local government financing vehicles LGFVs increasingly looking offshore to raise funds
The offshore bond market provides LGFVs with a deeper pool of liquidity and efficient means to raise funds. For example, Beijing Infrastructure Investment launched a medium-term notes program in 2014 to facilitate overseas fund-raising, and lifted the program size to $6 billion from an initial $2 billion in June 2015.